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Centene’s EPS Guidance Jumps From $3.40+ To $4.80+!

Centene Corporation reported second-quarter 2026 adjusted diluted EPS of $2.51, exceeding internal expectations. Supported by strong first-half performance, the company raised full-year adjusted EPS guidance to above $4.80 from its previous outlook of above $3.40. Medicaid results were broadly in line with expectations, although membership ended slightly below projections at approximately 12.1 million. Enrollment changes, eligibility activity, and state-specific program adjustments contributed to the decline, while attrition modestly increased member acuity. Centene now expects full-year Medicaid membership to decline 8% to 9%, compared with its previous estimate of 6%, partly reflecting preparation for OB3 implementation in 2027. The Medicaid health benefit ratio was 93.9%, with the full-year ratio expected near 93.5%, slightly above prior guidance. Rate negotiations remained constructive, with expected composite Medicaid rate increases improving to approximately 5% from 4.5%.